Regulatory Alerts2023-08-24
Instruction No. 062/CREPMF/2020 on the Segregation of Client Funds and the Credit Balance Standard for Management and Intermediation Companies (SGI) on the UMOA Regional Financial Market
The West African Monetary Union's Regional Council for Public Savings and Financial Markets (CREPMF) issued Instruction No. 062/2020 to mandate the segregation of client funds held by approved Management and Intermediation Companies (SGIs) into dedicated trust accounts. The regulation establishes strict operational rules for account maintenance, interest distribution, and the prohibition of using client balances for set-off or proprietary trading, while requiring a minimum credit balance-to-provision ratio of one. Furthermore, it defines precise calculation methods for client credit balances and grants a six-month transitional period for pre-existing SGIs to achieve full compliance upon the instruction's effective date.
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